LVR (loan-to-value ratio)

LVR is the size of your mortgage as a percentage of the property's value. New Zealand banks are limited in how much high-LVR lending they can do — investors typically need around a 30% deposit.

A $560,000 loan on an $800,000 property is a 70% LVR. The Reserve Bank sets LVR restrictions ("speed limits") on banks: only a small share of new lending can exceed set thresholds — meaning most investors need roughly 30% deposit or equity, and most owner-occupiers 20%.

LVR restrictions change with market conditions, and exemptions exist (notably for new builds). Non-bank lenders aren't bound by the same limits.

Source: RBNZ — LVR restrictions

This page is general information, not financial, legal, or tax advice. Rules change — always confirm current settings with the linked official sources and seek independent professional advice.